Related articles

We are looking for a concept by the UK government where it would share its views and plans with its own citizens, and see what they say about that, before we can actually express our views on this

Mario Draghi

In an attempt to force Mrs May to reveal her hand the bank chief resorted to Project Fear warning Britain would bear the brunt of the economic fallout rather than the EU.

Mr Draghi told the European Parliament’s economic and monetary affairs committee: “If, in the long run, the risk of a less open UK economy in terms of trade, migration and foreign direct investment were to materialise, there would be a negative impact on innovation and competition and, thus, productivity and potential output.

“Such developments would first and foremost weigh on the UK economy.”

EPA

Mr Draghi said the eurozone has remained resilient in the wake of the EU referendum

Mr Draghi said the eurozone has remained resilient in the wake of the historic June referendum but warned longer-term effects will “vary across countries depending on their trade links with the UK”.

He called for “clarity on the negotiation process as soon as possible in order to reduce uncertainty”.

Mr Draghi said: “We are looking for a concept by the UK government where it would share its views and plans with its own citizens, and see what they say about that, before we can actually express our views on this.”

The bank chief said he does not know the what the full impact of Brexit will be and placed the blame on Mrs May.

REUTERS

The bank chief said he does not know the what the full impact of Brexit will be

REUTERS

Mr Draghi told MEPs he wants the UK Government to clarify its Brexit negotiation plans

He said: “And the reason we don’t know is we have to see exactly how the final shape of the negotiations will be and how long they will last. It’s pretty clear that the longer they last, the bigger the uncertainty.”

Mr Draghi added the single market has been a “fundamental asset” for the UK as speculation over whether Britain will maintain access to the EU single market intensifies.

MEPs were told Brexit also raises questions of “sovereignty” as the crumbling bloc attempts to concentrate types of trading on the continent rather than in the City of London.

The ECB previously attempted to move euro-denominated securities away from London and into the euro area but was stopped following a legal battle with Britain.

Related videos

Mr Draghi said: “Following the outcome of the British referendum, there will certainly be issues of sovereignty in various parts of our payments framework, infrastructure framework, clearing systems and so on.

“If one wants to change that, it’s basically the legislators, you, who might do that.”

But despite his threats, Mr Draghi attempted to reassure MEPs that the ECB would continue to look at policies to underpin growth.